February 16, 2006
Analysys report on outsourcing by telecom operators
A recent report published by Analysys has emphasized the benefits of judicious outsourcing of business processes by telecommunication companies. According to the report, telecom companies need to have a relook at their outsourcing policy, and be open to agreements with third party outsourcing firms in areas that were formerly considered "core" concerns. By redefining their outsourcing outlook, companies can leverage the benefits of cost cuts, flexibility, and profit growth.
There are some key factors that telecom companies must consider in shaping their outsourcing policies, such as their market positioning, strategy, internal expertise and current efficiency. The Analysys report looks into the possible benefits that can be derived from outsourcing, and also the risks involved in handing over management of business processes to a third party. Cellular-News reports:
The Western European market for outsourcing technology and customer services by telecoms operators is expected to show 6% annual growth between 2005 and 2010, rising from US$7 billion to US$9.5 billion. Outsourcing of end-to-end network operation and management will be one of the fastest-growing segments, showing a CAGR of 14%.
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